Legislature(2011 - 2012)HOUSE FINANCE 519

02/06/2012 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 142 PRESUMPTION AGIA PROJECT IS UNECONOMICAL TELECONFERENCED
Heard & Held
+ HB 180 VETERAN DESIGNATION ON DRIVER'S LICENSE TELECONFERENCED
Moved CSHB 180(FIN) Out of Committee
+ HB 198 SPEC. EDUC. SERVICE AGENCY FUNDING/SUNSET TELECONFERENCED
Heard & Held
+= HB 118 RESEARCH AND DEVELOPMENT TAX CREDIT TELECONFERENCED
Heard & Held
3:13:48 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 180                                                                                                            
                                                                                                                                
     "An  Act authorizing  the Department  of Administration                                                                    
     to note a person's status  as a veteran on the person's                                                                    
     driver's license and to  provide certain information to                                                                    
    the Department of Military and Veterans' Affairs."                                                                          
                                                                                                                                
Co-Chair   Thomas   MOVED   to  ADOPT   proposed   committee                                                                    
substitute for  HB 180, Work Draft  27-LS0589\T, (Luckhaupt,                                                                    
2/6/12).   Co-Chair   Stoltze   OBJECTED  for   purpose   of                                                                    
discussion.                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAN SADDLER, SPONSOR, spoke in support of                                                                        
House Bill 180. He read the sponsor statement:                                                                                  
                                                                                                                                
     House Bill  180 seeks  to help Alaska  veterans receive                                                                    
     more  of the  benefits they  have earned  through their                                                                    
     sacrifice  and service  in uniform,  and to  which they                                                                    
     were entitled  by law  and custom.  It would  allow the                                                                    
     Division of Motor Vehicles (DMV)  to add information to                                                                    
     state   drivers'  licenses   or  identification   cards                                                                    
     signifying the holder's status as  a veteran, and would                                                                    
     allow DMV  to share  that information with  the state's                                                                    
     veterans benefit office.                                                                                                   
                                                                                                                                
     Alaska  is among  the most  veteran-friendly states  in                                                                    
     the   Union.   Many    businesses   and   organizations                                                                    
     demonstrate  their  appreciation  by  offering  various                                                                    
     discounts, preferences and other  benefits to bona fide                                                                    
     veterans.  However, veterans  must  usually prove  they                                                                    
     qualify  by   presenting  certified  copies   of  their                                                                    
     discharge  documents -  the DD-214,  DD-215, or  NGB-22                                                                    
     forms,  exposing  these  critical  documents  to  wear,                                                                    
     damage or loss.                                                                                                            
                                                                                                                                
     By  giving  veterans  a  way   to  carry  reliable  and                                                                    
     convenient  proof  of   their  status  on  state-issued                                                                    
     cards, this bill would help  them more easily enjoy the                                                                    
     full range  of personal,  business and  social benefits                                                                    
     offered to them by a grateful state.                                                                                       
                                                                                                                                
     HB 180 could  also help relieve the  situation in which                                                                    
     tens  of thousands  of Alaska  veterans may  be missing                                                                    
     out  on significant  government benefits,  because they                                                                    
     have  no contact  with the  state's Office  of Veterans                                                                    
     Affairs. The  bill would allow  the DMV to  provide the                                                                    
     names and  addresses of those who  were issued veteran-                                                                    
     designated driver's  licenses or ID cards  to the state                                                                    
     veterans' office.  That office could then  reach out to                                                                    
     make  more  veterans  aware of  programs  available  to                                                                    
     them, and  to help  them receive  any benefits  owed to                                                                    
     them.                                                                                                                      
                                                                                                                                
Representative Saddler outlined changes from CSHB 180 (STA)                                                                     
to version X:                                                                                                                   
                                                                                                                                
   · Page  1, line 9:                                                                                                           
     Adds  "at  the  request  of  the  person"  before  "The                                                                    
     department shall…"  This would  allow for  the veterans                                                                    
     opt-in  provision for  information  to go  to the  U.S.                                                                    
     Office of Veterans Affairs for identification cards.                                                                       
                                                                                                                                
   · Page 2, line 1 :                                                                                                           
     Adds  "with the  approval  of the  person" before  "The                                                                    
     department shall…"  This would  allow for  the veterans                                                                    
     opt  in provision  for information  to go  to the  U.S.                                                                    
     Office of Veterans Affairs for the driver's license.                                                                       
                                                                                                                                
   · Page 2 line 8 :                                                                                                            
     Adds  "at  the  request  of  the  person"  before  "the                                                                    
     department shall…"                                                                                                         
                                                                                                                                
   · Page 2, Lines 16-19:                                                                                                       
                                                                                                                                
     Adds language  allowing for a  $5 fee for  the driver's                                                                    
     license  replacement  with   the  veteran  designation,                                                                    
     which  is a  change from  a $15  replacement fee.  This                                                                    
     would   cover   the    department's   expense   without                                                                    
     additional revenue.                                                                                                        
                                                                                                                                
   · Page 2, Lines 13-14:                                                                                                       
                                                                                                                                
     Adds "with the approval  of the applicant" and provides                                                                    
     that  the department  "shall make  available" [provide]                                                                    
     the name  and address…" This makes  sending information                                                                    
     from the Division of Motor  Vehicles to the U.S. Office                                                                    
     of Veterans Affairs for the opt-in provision.                                                                              
                                                                                                                                
   · Page 2, Line 20: changes effective date from 2012 to                                                                       
     "2013".                                                                                                                    
                                                                                                                                
3:17:51 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
further OBJECTION, committee substitute for HB 180, Work                                                                        
Draft 27-LS0589\T, (Luckhaupt, 2/6/12) was adopted.                                                                             
                                                                                                                                
3:18:50 PM                                                                                                                    
                                                                                                                                
RON SIEBELS,  MILITARY ORDER OF THE  PURPLE HEART, ANCHORAGE                                                                    
(via   teleconference),   testified   in  support   of   the                                                                    
legislation.  He stressed  the benefits  of the  legislation                                                                    
and the importance the state recognition of veterans.                                                                           
                                                                                                                                
CHRIS  NELSON, MULDOON  (via  teleconference), testified  in                                                                    
support  of HB  180.  He noted  the  high unemployment  rate                                                                    
among recently returned veterans,  which was higher than the                                                                    
national    unemployment    rate.    Several    governmental                                                                    
jurisdictions were  instituting veterans'  hiring preference                                                                    
along with  unions and private employers  that were actively                                                                    
recruiting  veterans. He  stressed  the  importance of  easy                                                                    
identification and  noted that the service  discharge papers                                                                    
were cumbersome  and included  more information  than needed                                                                    
by an employer.                                                                                                                 
                                                                                                                                
3:21:04 PM                                                                                                                    
                                                                                                                                
Co-Chair Thomas  questioned where  the designation  would be                                                                    
on  the license  and  suggested an  American  flag could  be                                                                    
added to the background.                                                                                                        
                                                                                                                                
RIC  DAVIDGE, PRESIDENT,  VIETNAM VETERANS  OF AMERICA  (via                                                                    
teleconference),  testified   in  support  of  HB   180.  He                                                                    
stressed that  the identification of veterans  on state ID's                                                                    
was a  national priority.  He stressed  the need  to contact                                                                    
veterans  in regards  to medical  conditions. He  pointed to                                                                    
congressional directives to seek  out veterans for services.                                                                    
The legislation would  also allow a uniform  ID for veterans                                                                    
to   obtain  services   for  disabilities,   discounts,  and                                                                    
employment applications.                                                                                                        
                                                                                                                                
3:24:52 PM                                                                                                                    
                                                                                                                                
SUSAN GORSKI, EAGLE RIVER CHAMBER  OF COMMERCE, CHUGIAK (via                                                                    
teleconference),  testified  in  support   of  HB  180.  She                                                                    
observed  that  the  legislation would  facilitate  veterans                                                                    
with other  public services  and prevent  the need  to carry                                                                    
discharge papers.                                                                                                               
                                                                                                                                
Co-Chair Stoltze noted  the high density of  veterans in his                                                                    
district, which was double the national average.                                                                                
                                                                                                                                
3:27:11 PM                                                                                                                    
                                                                                                                                
VERDIE  BOWEN,  DIRECTOR  VETERANS AFFAIRS,  ANCHORAGE  (via                                                                    
teleconference),  testified   in  support  of  HB   180.  He                                                                    
observed that not all veterans  received a medical care card                                                                    
from  U.S. Office  of Veterans  Affairs (VA);  only veterans                                                                    
that receive  care at  the VA received  a card.  Only 30,000                                                                    
veterans were registered at the  VA. He felt the legislation                                                                    
would facilitate identification of veterans.                                                                                    
                                                                                                                                
3:28:40 PM                                                                                                                    
                                                                                                                                
Representative  Neuman  asked  if veterans  should  have  to                                                                    
check to opt in or out with the VA.                                                                                             
                                                                                                                                
Mr. Bowen  would prefer to  be able to contact  all veterans                                                                    
but stressed that receipt of  the benefit on the license was                                                                    
the first priority.                                                                                                             
                                                                                                                                
Representative Neuman noted an  amendment might be necessary                                                                    
to ensure the protection of a veteran's privacy.                                                                                
                                                                                                                                
3:30:23 PM                                                                                                                    
                                                                                                                                
Representative Saddler  agreed with  Representative Neuman's                                                                    
concern and observed an amendment  might be needed to delete                                                                    
"with the approval of the  person" and to insert "unless the                                                                    
person  objects."  Co-Chair  Stoltze noted  that  amendments                                                                    
would be taken  up at the next hearing  and acknowledged the                                                                    
need to protect veterans' privacy.                                                                                              
                                                                                                                                
Representative Guttenberg asked if  the list of veterans was                                                                    
available to  service agencies for notification  of benefits                                                                    
only.  Mr. Bowen  affirmed that  the provision  was included                                                                    
through the  PFD application.  Currently, 3,400  had checked                                                                    
the  veteran's  box;  the majority  of  addresses  were  for                                                                    
military installations.                                                                                                         
                                                                                                                                
3:32:07 PM                                                                                                                    
                                                                                                                                
Representative Saddler  felt privacy  was protected  and had                                                                    
no objection to the current version.                                                                                            
                                                                                                                                
Representative Gara  asked if the Alaska  National Guard was                                                                    
included. Mr. Bowen affirmed.                                                                                                   
                                                                                                                                
3:33:17 PM                                                                                                                    
                                                                                                                                
STACY  OATES,  ADMINISTRATIVE  MANAGER,  DIVISION  OF  MOTOR                                                                    
VEHICLES,     DEPARTMENT      OF     ADMINISTRATION     (via                                                                    
teleconference),  provided information  on the  legislation.                                                                    
She observed  that the administration was  neutral regarding                                                                    
the  legislation but  cautioned that  the legislation  would                                                                    
open  the door  to the  addition of  other designators.  She                                                                    
maintained that  the purpose of  the license was  to provide                                                                    
proof of the ability to drive  and the proof of identity for                                                                    
law enforcement purposes. There  would be additional revenue                                                                    
from the initial  enactment. She observed that  wait time at                                                                    
Division of  Motor Vehicle (DMV) offices  might be impacted.                                                                    
She  estimated  that  fifty percent  of  qualified  veterans                                                                    
would opt  for the designator  within the first  year, which                                                                    
was reflected in the fiscal note.                                                                                               
                                                                                                                                
3:35:25 PM                                                                                                                    
                                                                                                                                
Representative  Edgmon  referred  to  the  fiscal  note  and                                                                    
observed that it  was unclear whether DMV  would collect the                                                                    
standard fees for driver's licenses.                                                                                            
                                                                                                                                
Co-Chair Stoltze asked  if the department had  a position on                                                                    
the organ donor designation. Ms. Oates could not answer.                                                                        
                                                                                                                                
3:37:14 PM                                                                                                                    
                                                                                                                                
Representative Wilson  spoke to  the estimated wait  time at                                                                    
DMV's.  Ms. Oates  could not  determine the  real effect  on                                                                    
wait times, but  noted that individuals would  have to apply                                                                    
in  person. Representative  Wilson  reiterated concern  with                                                                    
wait times at DMV offices.  Ms. Oates acknowledged that wait                                                                    
time varied.                                                                                                                    
                                                                                                                                
3:39:03 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough expressed  support for the legislation                                                                    
with a  provision to opt-out.  She asked that  the committee                                                                    
be provided information relating to  the Real ID Act and the                                                                    
effect on Alaskans.                                                                                                             
                                                                                                                                
Representative Saddler noted that  the fiscal note was based                                                                    
on the $15  replacement charge and would need  to be updated                                                                    
to reflect the  change to $5. He observed that  the right to                                                                    
privacy was protected in version T on page 2, line 1.                                                                           
                                                                                                                                
3:41:18 PM                                                                                                                    
                                                                                                                                
Co-Chair Thomas observed that the  fiscal note contained 160                                                                    
design hours  to accommodate the designation.  He reiterated                                                                    
the possibility  of placing a  flag in the background  [as a                                                                    
designation]. Ms. Oates could not respond.                                                                                      
                                                                                                                                
Co-Chair  Thomas   reiterated  that  a  flag   would  be  an                                                                    
appropriate identifier.                                                                                                         
                                                                                                                                
Co-Chair   Stoltze   expressed   disappointment   with   the                                                                    
administration's neutral position.                                                                                              
                                                                                                                                
3:43:35 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  asked if the  160 contract hours  could be                                                                    
quantified. Ms. Oates noted it  would be $143 dollars at 160                                                                    
hours ($22,880).                                                                                                                
                                                                                                                                
Vice-chair Fairclough  concurred that a  US flag would  be a                                                                    
fitting backdrop.                                                                                                               
                                                                                                                                
Vice-chair  Fairclough MOVED  to  ADOPT  reduce the  contact                                                                    
costs for design  in the fiscal note by  $33 thousand. There                                                                    
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
3:46:49 PM                                                                                                                    
                                                                                                                                
Representative   Costello  MOVED   to  ADOPT   a  conceptual                                                                    
amendment: before "designation"  insert "United States flag"                                                                    
on  page 1,  line  9 and  page  2, line  8.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
3:48:41 PM                                                                                                                    
                                                                                                                                
Co-Chair  Thomas  MOVED  to  report  CSHB  180(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying revised fiscal note.  There being NO OBJECTION,                                                                    
it was so ordered.                                                                                                              
                                                                                                                                
CSHB  180(FIN) was  REPORTED  out of  Committee  with a  "do                                                                    
pass" recommendation  and with a  new fiscal impact  note by                                                                    
the   House  Finance   Committee  for   the  Department   of                                                                    
Administration.                                                                                                                 
                                                                                                                                

Document Name Date/Time Subjects
Explanation of Changes _ HB 180.pdf HFIN 2/6/2012 1:30:00 PM
HB 180
HB 180 Military Discount List.pdf HFIN 2/6/2012 1:30:00 PM
SSTA 3/22/2012 9:00:00 AM
HB 180
HB 180 Sponsor Statement.pdf HFIN 2/6/2012 1:30:00 PM
HB 180
HB 198 SESA Presentation - House Finance 2012.ppt HFIN 2/6/2012 1:30:00 PM
HB 198
SESA's Funding comparison Charts.pdf HFIN 2/6/2012 1:30:00 PM
HB 198
HB 198 SESA Responsibilities.pdf HFIN 2/6/2012 1:30:00 PM
HB 198
HB 198 SESA Sunset EliminationFunding Request.docx HFIN 2/6/2012 1:30:00 PM
HB 198
HB 198 Sponsor Statement.pdf HFIN 2/6/2012 1:30:00 PM
HB 198
SESA Audit 1994.pdf HFIN 2/6/2012 1:30:00 PM
HB 198
CSHB142 FIN WORKDRAFT.pdf HFIN 2/6/2012 1:30:00 PM
HB 142
CSHB 142 FIN workdraft Summary of Changes.pdf HFIN 2/6/2012 1:30:00 PM
HB 142
CSHB 142 (FIN)Workdraft Sponsor Statement.pdf HFIN 2/6/2012 1:30:00 PM
HB 142
CS HB118 FIN Workdraft.pdf HFIN 2/6/2012 1:30:00 PM
HB 118
HB118CS(L&C)-NEW FN-DOLWD-UI-2-3-12.pdf HFIN 2/6/2012 1:30:00 PM
HB 118
2012 HB118-CCED-DED-PowerPoint.pdf HFIN 2/6/2012 1:30:00 PM
HB 118
CSHB 180 FIN WORKDRAFT-27-LS0589-T.pdf HFIN 2/6/2012 1:30:00 PM
HB 180
CSHB 180 Proposed Changespdf.pdf HFIN 2/6/2012 1:30:00 PM
HB 180
HB 198 SESA Agency Facts 022312.pdf HFIN 2/6/2012 1:30:00 PM
HB 198
HB 198 SESA Answers to HFIN Questions from 020612.pdf HFIN 2/6/2012 1:30:00 PM
HB 198
CS HB198 SESA Av Daily Membership FY 88 to FY 11.pdf HFIN 2/6/2012 1:30:00 PM
HB 198